Are you ready to buy a house in 2022? Investing in a house requires a large monetary commitment. You are planning to invest your hard-earned money in your dream house.
If you wondering about the process, we are here to tell you the journey a homebuyer takes when buying a house. Firstly, when the homebuyer and seller agreed. Then the process of documentation commences. However, before initiating the process, you must verify the following documents-
- Mother deed
- Sale deed
- Encumbrance certificate (EC)
- Khata certificate & extract
- The latest tax paid receipt
- RTC Extract
- No objection certificate from the bank in case the property was bought on a home loan
- No objection certificate from association/ society office / Maintenance office (NOC)
- Latest utility bills – electricity and water
- Aadhar of seller
- Family tree and death certificate if the property was inherited
- General Power of Attorney / Power of attorney/ Special power of attorney, if applicable
When you want to buy a house for sale in Kharar or anywhere else, make sure you know about the house buying process in India. You need to map out your plan so that your home buying process goes smoothly.
Budgeting and home loan eligibility –
To begin, you need to know your budget. Even if you are interested in getting your house financed through a bank. You need to know your loan eligibility. Loan eligibility factors in the current age, current earnings, any other outstanding loans, and past credit history. Mostly, banks finance 80% – 85% of the home value. But, you need a make a down payment of a considerable amount; 15% – 20% of the amount needs to be arranged by the homebuyer.
Resale and rental-
If you’re buying a house or apartment in Kharar, Mohali for investment purposes. You need to do due diligence about the rental rate in the location. Is the area developed, and has the potential to convert into a high rental property. Homebuyers usually neglect to consider the resale value of the property. Resale value is one of the crucial factors that every homebuyer must consider before planning to invest in a property.
Investment advisors suggest that homebuyers must opt for EMI which is less than 45% of their total monthly earnings. The tenure of home pans can be up to 30 years. However, the downside of having a longer loan tenure is a higher interest rate.
Stamp duty and registration fee-
This is one of the important expenses that every homebuyer incurs. When planning on buying a property, you must inquire about the stamp duty and other details from local authorities.
Property insurance is a way to protect your financial future from certain damages to your property. There are many different insurance policies are available, providing varying levels of coverage.